MUNJALAU - Munjal Auto Inds
📢 Recent Corporate Announcements
Munjal Auto Industries reported a robust Q3 FY26 with consolidated revenue rising 16% YoY to ₹605.81 crore. Net profit for the quarter surged 171% YoY to ₹13.48 crore, driven by a strong turnaround in standalone operations which posted a profit of ₹10.98 crore compared to a loss in the previous year. The company's EPS improved significantly to ₹1.35 from ₹0.22. Despite a minor exceptional hit of ₹1.22 crore due to labor code changes, the overall financial health shows marked improvement across both its auto and composite segments.
- Consolidated Revenue from Operations grew 16% YoY to ₹605.81 crore from ₹522.09 crore.
- Consolidated Net Profit surged 171% YoY to ₹13.48 crore compared to ₹4.97 crore.
- Standalone operations turned profitable with a PAT of ₹10.98 crore vs a loss of ₹2.68 crore in Q3 FY25.
- Consolidated EPS rose significantly to ₹1.35 per share from ₹0.22 per share YoY.
- Composite Products and Moulds segment contributed ₹219.73 crore to the quarterly revenue.
Munjal Auto Industries reported a robust performance for the quarter ended December 31, 2025, with consolidated revenue rising 16% YoY to ₹605.81 crore. Net profit (PAT) saw a massive surge of 171% YoY, reaching ₹13.47 crore compared to ₹4.97 crore in the same period last year. The growth was supported by strong performance in both the Auto Components and Composite Products segments. The company also transitioned to a lower corporate tax regime of 25.17%, which aided the bottom line despite a minor exceptional charge related to new labour codes.
- Consolidated Revenue from Operations grew 16% YoY to ₹605.81 crore.
- Consolidated Net Profit (PAT) surged 171% YoY to ₹13.47 crore from ₹4.97 crore.
- Consolidated EPS increased significantly to ₹1.35 from ₹0.22 in the year-ago quarter.
- Composite Products and Moulds segment contributed ₹219.73 crore to total revenue.
- An exceptional item of ₹1.22 crore was recorded due to the incremental impact of new Government Labour Codes.
Munjal Auto Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ending December 31, 2025. The company's Registrar and Share Transfer Agent, MCS Share Transfer Agent Limited, confirmed that all dematerialization requests were processed within the stipulated 15-day timeframe. The physical certificates were mutilated and cancelled after verification, and the depositories' names were updated in the register of members. This filing confirms the company's adherence to standard regulatory procedures regarding share handling.
- Compliance certificate issued for the quarter ended December 31, 2025
- Confirmation that dematerialization requests were processed and confirmed to depositories
- Security certificates were mutilated and cancelled within the mandatory 15-day period
- Registrar MCS Share Transfer Agent Limited verified the substitution of depository names in the register of members
Munjal Auto Industries Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the upcoming financial results. The window will remain closed until 48 hours after the declaration of the un-audited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure begins on Thursday, January 1, 2026.
- Applies to all Designated Persons and their Immediate Relatives under SEBI regulations.
- Closure period extends until 48 hours after the Q3 and nine-month FY2025-26 results are declared.
- Board meeting date for financial result approval to be announced separately.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew by 9.81% YoY to INR 2,066.37 Cr in FY25 from INR 1,881.76 Cr in FY24. The subsidiary Indutch Composites contributed INR 795.85 Cr to the total revenue, representing approximately 38.5% of consolidated turnover.
Geographic Revenue Split
Not explicitly disclosed in available documents, though the company operates primarily in India with major manufacturing hubs in Vadodara and Gurugram to serve domestic OEMs.
Profitability Margins
Consolidated Profit Before Tax (PBT) margin declined to 2.24% in FY25 from 3.25% in FY24. Net profit for the subsidiary Indutch was INR 8.16 Cr on a revenue of INR 795.85 Cr, representing a thin net margin of 1.02% due to ramp-up costs.
EBITDA Margin
Consolidated EBITDA stood at approximately INR 136.48 Cr in FY25 (6.6% margin), compared to INR 144.47 Cr in FY24 (7.6% margin). The 100 bps compression is attributed to a 9.8% increase in raw material costs and a 12.4% rise in employee benefit expenses.
Capital Expenditure
The company has a planned capital expenditure of INR 60-70 Cr for FY2025, primarily funded through a sanctioned term loan of INR 62 Cr to support capacity expansion and the ramp-up of the composites business.
Credit Rating & Borrowing
ICRA reaffirmed the long-term rating at [ICRA]AA- (Stable) and short-term rating at [ICRA]A1+. Borrowing costs are supported by a conservative capital structure with a consolidated net debt/OPBITDA of 0.8 times as of FY24.
Operational Drivers
Raw Materials
Steel and metal components for muffler assemblies (approx. 69.2% of total revenue) and composite materials for the Indutch division.
Import Sources
Not specifically disclosed, but operations are centered in Gujarat and Haryana, suggesting domestic sourcing for steel components.
Key Suppliers
Not specifically named; however, the company operates as a key Tier-1 supplier to Hero MotoCorp Limited (HMCL).
Capacity Expansion
Planned capex of INR 60-70 Cr for FY2025 is directed toward scaling the Indutch Composites division and maintaining muffler assembly lines to meet OEM demand.
Raw Material Costs
Raw material consumption costs rose 9.8% YoY to INR 1,430.28 Cr in FY25. Procurement is highly sensitive to steel price fluctuations which directly impact the 69.2% cost-to-revenue ratio.
Manufacturing Efficiency
Depreciation and amortization increased by 6.1% to INR 59.10 Cr in FY25, reflecting higher asset utilization and new equipment commissioning.
Logistics & Distribution
Distribution and other expenses totaled INR 284.78 Cr in FY25, representing 13.7% of revenue.
Strategic Growth
Expected Growth Rate
10-12%
Growth Strategy
Growth is targeted through the 'healthy ramp-up' of Indutch Composites, which provides entry into non-auto sectors like wind energy and aerospace. This offsets the stagnation in the domestic 2W muffler market.
Products & Services
Exhaust system components (mufflers) for two-wheelers, fuel tanks, and composite components for industrial applications.
Brand Portfolio
Munjal Auto, Indutch Composites.
New Products/Services
Expansion into composite components for renewable energy and aerospace via Indutch, expected to increase its revenue contribution beyond the current 38%.
Market Expansion
Targeting non-automotive sectors to diversify the client base away from Hero MotoCorp.
Market Share & Ranking
Key supplier status for HMCL, one of India's largest 2W manufacturers.
Strategic Alliances
Subsidiary relationship with Indutch Composites Technology Private Limited (ICTPL).
External Factors
Industry Trends
The industry is shifting toward electrification. While the 2W ICE market is currently stable, the long-term trend is disruptive for exhaust manufacturers, forcing a pivot to lightweight composites.
Competitive Landscape
Competes with other Tier-1 auto component manufacturers; competitive pressure is high due to declining realizations in the muffler segment.
Competitive Moat
The moat is built on a long-standing relationship and 'key supplier' status with HMCL. However, this is only sustainable as long as ICE vehicles remain dominant in the 2W market.
Macro Economic Sensitivity
Highly sensitive to the Indian two-wheeler industry growth and rural demand, which drives Hero MotoCorp's sales volumes.
Consumer Behavior
Shift toward electric mobility in urban areas is reducing the addressable market for traditional exhaust systems.
Geopolitical Risks
Trade barriers affecting the global wind energy or aerospace sectors could impact the Indutch subsidiary's growth prospects.
Regulatory & Governance
Industry Regulations
Compliance with FAME-II and other EV subsidies indirectly affects demand for the company's core ICE products by incentivizing competitors (EVs).
Environmental Compliance
Subject to evolving emission norms (BS-VI and beyond) which dictate the technical specifications of exhaust systems.
Taxation Policy Impact
Effective tax rate for FY25 was approximately 38% after accounting for current tax of INR 17.75 Cr and deferred tax credits.
Legal Contingencies
The company disclosed pending litigations in Note 47 of the consolidated financial statements; however, no material foreseeable losses on long-term contracts were reported as of March 31, 2025.
Risk Analysis
Key Uncertainties
The primary uncertainty is the pace of e2W penetration, which could render the core muffler business obsolete. Potential impact is a 90% reduction in standalone revenue if ICE 2Ws are phased out.
Geographic Concentration Risk
High concentration in India, specifically tied to the production schedules of HMCL's plants.
Third Party Dependencies
Critical dependency on Hero MotoCorp for nearly all standalone cash flow generation.
Technology Obsolescence Risk
High risk of technology obsolescence for exhaust systems due to the global and domestic shift toward zero-emission vehicles.
Credit & Counterparty Risk
Low counterparty risk as the primary customer (HMCL) is rated [ICRA]AAA (Stable).